Chalco Raises Funds to Expand Alumina Capacity

SHANGHAI, Sept. 28 (SMM) – The Aluminum Corporation of China (Chalco) disclosed on September 27 its revised program on A-shares private placement. Chalco plans to raise not more than RMB 8 billion by privately issuing no more than 1.45 billion shares compared with 1.25 billion shares in March 8 this year, signaling its cash tightness. 

According to Chalco’s announcement, the funds raised will be used for the alumina project in Xing County, Bayer process expansion project at its Zhongzhou Branch, as well as to replenish working capital after being deducted issuance fees. Approximately RMB 4.7 billion, RMB 1.3 billion and RMB 2 billion will be allocated to the three projects, respectively.  

Chalco aims mainly to expand alumina capacity by fund-raising.

It is known that the alumina project in Xing County will have an 800,000 mt/yr metallurgical-grade alumina capacity and will be equipped with the construction of bauxite mine with an annual capacity of 990,000 mt. The project is scheduled to be finished within two years. 

Chalco Zhongzhou Branch’s Bayer process expansion project is based in Xiuwu County in Henan province. In addition to the expansion of the third and fourth Bayer process production line, two sets of 30,000-KW thermo-electric units and mine facility that will supply 1.25 million mt of bauxite will also be constructed. Investment for the project mainly covers bauxite exploration, alumina smelter, thermal-electric stations, gas stations, water plants, railways and projects outside the plant. The project is expected to achieve an annual alumina capacity of 700,000 mt once it enters production after two years. 50% of its capacity will come online after one year.